Mortgage Redeux

July 1, 2009 

Financial Blunder American Style, the near maniacal level of Government waste, stupidity and mindless blundering continues! 

Yes, I know, the comments are polemic in appearance however, I know no better way to express the very concern we all have yet absolutely no one is paying attention to. The consequences either. 

As of this writing, the Federal Government is nearing 7 Trillion Dollars in various stimulus miss-adventures (including the exposed actions of the Federal Reserve) yet the economic grip on the greased pole continues to slip further on to financial oblivion. 

Observing the numbers of mortgage failures, just in single family owner occupied homes, currently approaching 3 million homeowners (since 6/07) not including the 1.5 million homeowners who are presently at least 1 month late on their payments, or the estimate 950,000 homeowners who are effectively “squatters” as the Lenders simply have stopped or can no longer manage the foreclosure process.  (statistical info source: Mortgage Bankers Association) 

I have a great fair amount of knowledge in the area of Real Estate, Banking and Finance so consider, if you will,  the following bullets as points you should know that the Government conceals and provided to you by an individual (me) who has practical knowledge and experience in the area. 

  • The illusion of “toxic assets” being recyclable is a complete fabrication.  If the underlying instrument is in default, the only collateral value is the underlying security (the home in this instance) and that, one would assume, still exists.  Why then would you consume taxpayer funds to rescue a non-existent “instrument”.  There’s only one reason of course and that is the Government (Politicians) are completely ignorant to the mechanics of the process or they are complicit in the fraud being waged against the Nation.
  • Banks should not be bank-rolled at the expense of the taxpayer.  The belief that we need to “rescue the financial system” is not supported by the actions of the Administration nor the Federal Reserve.  It is the same “false premise” used in the previous comment.
  • The entire Economic system of the U.S. is built on the concept of Leveraging.  In it’s simplest form:  for every dollar you have, you can borrow 10.  The concept is based on a model of “perpetual inflation” the logic being, also in its simplest form: that you can borrow all the equity from your home because in 10 years, the home will inflate to equal what your debt load is, so you can leverage the home again, based on it’s new (inflated) value to pay off the old loan.  Problem is, you never own the home, the greater problem is, the “perpetual inflation” model is mathematically unsustainable, as we see the effects all around us.
  • Why is mathematically unsustainable? Though there are many reasons, here are two: (1.) The notion requires an ever expanding money supply (Inflation) just to accommodate the effects of interest.  And (2.) It also requires an “income assumption” and that means that Income will rise at least equal to the increased costs of debt.  Well, one has only to look at the mortgage failure rate to see how functional this assumption is.  U.S. Household Incomes, adjusted for inflation, are those of 1978.  How’s that for “functional”.
  • Referring to the “leveraging” concept and “perpetual inflation” model of the previous comment, it should be noted that the Federal Government operates on/in precisely the same way.
  • Rescuing Families in “default” is utter stupidity.  Not because I don’t want a person to have a home but truthfully,  if they can’t afford the home presently what going to keep them liquid after the restructuring if not yet another rescue.
  • It will be far more economically viable simply for the Government to instruct the Federal Reserve to “vacate” all Single Family Owner Occupied Debt!  Using their model, this will “reset” the cycle of borrowing which will re-start the pagan consumer based consumption economy and since this nation no longer manufactures and tangible form of wealth, the Chinese will be happy to purchase more Federal debt from the money we give them through our purchases of all the “stuff” we purchase form them.  There’s a dubious form of Federalism for you! 

It’s important to note that I have no allegiance to the actions of the Federal Government or its conduit the Federal Reserve Bank, or perhaps, The Federal Reserve Bank and its conduit the Federal Government.  Our economic future lies in structural and system Economic revitalization regardless of what Obama says or for that matter any of his Wall Street Clad Goons! 

The fact of the matter is this: 

  1. The Government will not seek to cure the economic mess until such time the People are completely economically depressed and socially divisive.
  2. The determination has been made that Global Economic & Financial Management is the cause celeb that will insure the survival and preeminence of the nouveau-elite.  We just don’t happen to be one of them.
  3. For the first time in U.S. History, 2008 marked the first year the U.S. was a net importer of its food supply.  In other words, we don’t grow a sufficient quantity of food required to feed our own Nation.
  4. So long as the People remain detached from the practices of their Government and blindly accept their renditions, a correction will not occur.  They’re counting on it. 

I don’t make this stuff up, this is precisely how it is! 

Obama understand the process: “overwhelm the system!”  The effectiveness of this ideology is in the proof that many are completely unaware that they have been “overwhelmed!” 

More baseball, basketball, football and cage-fighting!  Beer, I want more BEER!

The time is upon us where the water the government provides your neighbor for drink will be drawn from the well that was once your own!  Welcome to change: The New Amerika! 

Wasn’t at all what you thought it would be, now is it! 

Forgive me, I’m angry, to waste the divine brilliance of the Human Spirit troubles me, as it should you too!  We can/must do better than this! 

Selah! 

Curtis C. Greco, Founder

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